2026
9
British Lifestyles: 2026
2026-05-11T16:00:59+00:00
REP74B3D7AE_C77A_4410_B3D7_AEC77AF41031
2195
193345
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Report
en_GB
UK consumer spending grew by an estimated 4.6% in 2025, to £1.9 trillion. Growth remains predominantly driven by inflation, and consumers continue to take a cautious approach to discretionary purchasing.
UK
Retail
Beauty and Personal Care
Clothing and Fashion
Foodservice
Household
Insurance
Leisure and Entertainment
Technology
Travel
simple

British Lifestyles: 2026

"Brits are more in touch than ever before but crave analogue experiences amid a perceived overreliance on tech. Brands that help balance 'real' connections with the benefits of digital innovation will hold mass appeal."

Rich Shepherd, Associate Principal - Consumer Insights

Rich Shepherd, Associate Principal - Consumer Insights

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for British Lifestyles
    • Opportunities
    • Promote real connections
    • Community hubs create opportunities for belonging and brand building
    • AI implementation requires a balanced approach
  2. THE MARKET

    • Total consumer spending market size and forecast
    • Consumer spending set for steady growth over the next five years
    • Graph 1: total UK consumer spending (£ billions) and forecast, 2019-30
    • Total consumer spending at current and constant prices, 2019-30
    • High cost of essentials maintains pressure on discretionary spending
    • Graph 2: estimated consumer spending, by category, 2025
    • Predicted growth in holidays and foodservice reflects strong desire for social experiences
    • Graph 3: estimated percentage change in consumer spending, by category, 2024-25
    • Graph 4: forecast percentage change in consumer spending, by category, 2025-30
    • The economy
    • Waves of uncertainty are holding back the UK economy
    • Graph 5: quarterly change in GDP, Q1 2021-Q4 2025
    • Value will remain the key feature as Brits navigate another income squeeze
    • Graph 6: CPI and average wage rises, 2021-26
    • Further interest rate cuts are dependent on improvements in the inflation outlook
    • The changing nature of work and higher costs have driven youth unemployment…
    • Graph 7: unemployment rate, by age, 2021-26
    • … but existing employees are generally confident in their roles
    • Graph 8: perceived job security, by generation, 2026
    • Household finances
    • The mean full-time salary in the UK is around £50,000
    • Graph 9: annual gross pay, full-time employees only, by age, 2024/25
    • Most are getting by and expect to continue to do so
    • Graph 10: current financial wellbeing, by generation, 2026
    • Graph 11: financial confidence for the year ahead, by generation, 2026
    • A K-shaped recovery
    • Graph 12: changes in household finances over the last year, by household income, 2026
    • Consumers are cautious, but Brits mostly maintained spending last year
    • Graph 13: spending levels in 2025 compared to 2024, by category, 2025
    • Graph 14: expected change in spending in 2026 compared to 2025, by category, 2026
    • The British people
    • Population growth is set to slow
    • Graph 15: population estimates, 2022 projection, 2007-47
    • Stricter immigration requirements have immediately cut net migration
    • Graph 16: mid-year migration estimates (thousands), 2015-25
    • Younger Brits are a more diverse group
    • The ageing population will increase focus on long-term care
    • Graph 17: median age of the population, 1996-2066
    • Graph 18: population, by age, 2026-66
    • Brits are living with parents longer, and having their own kids later
    • Graph 19: percentage of young people living with parents, by age, 1996-2024
    • Graph 20: standardised mean age of parents, all births, 1984-2024
    • The polycrisis is weighing on British consumers’ minds
    • Graph 21: consumer concerns, 2026
  3. THE CONSUMER

    • Loneliness
    • More connected than ever, but many still feel alone
    • Three quarters of Brits have experienced loneliness
    • Community hubs can offer low-cost social contact
    • Remote work carries an inherent risk of loneliness
    • Modern working routines require considered social support
    • Graph 22: experience of loneliness, by work location, 2026
    • Digital spaces are redefining friendships and belonging
    • There’s still no replacement for the real thing
    • Belonging
    • Strong support networks underpin a sense of belonging
    • Focus on serving personal celebrations to capitalise on consumers’ sense of belonging
    • Bring people together, whatever the occasion
    • Modern festivals face a choice in who they want to serve
    • Graph 23: people who feel a sense of belonging from festivals, by age, 2026
    • Support community groups to win local affection
    • Graph 24: what makes people feel a sense of belonging, by age and gender, 2026
    • Cultural discussion
    • The national conversation is centred on personal, everyday topics
    • Graph 25: what people talk about, 2026
    • Most Brits reject the idea that they live in an echo chamber…
    • … but conflict avoidance is restricting open debate
    • Encourage conversations about beauty and ageing
    • Graph 26: who people talk to about beauty and personal care, by age, 2026
    • Food and drink brands can reinforce emotional connections at the dinner table and beyond
    • Graph 27: how people talk about food and drink with family/friends, by age of children in the household, 2026
    • Communication preferences for friends and family
    • Constant companionship makes instant messaging as popular as in-person meet-ups
    • Facilitate shared moments dedicated connection to boost wellness
    • Digital communications are popular across the generations
    • Graph 28: preferred ways to keep in touch with family and friends, by generation, 2026
    • Communication preferences for business and service providers
    • Digital communications have firmly overtaken mail as the preferred method for professional communication
    • Instant messaging with businesses appeals to young customers
    • In person contact can develop brand affinity, but not at the cost of convenience
    • AI and human connection
    • Maintaining a human presence in customer service will become a key brand differentiator
    • Graph 29: agreement with the statement “I would choose a business with human customer service staff over one that used AI for customer service”, by generation
    • Promote analogue moments to avoid digital fatigue
    • From business efficiency to personal guides
    • Most Gen Z and Younger Millennials are open to AI advice on personal issues
  4. CONSUMER SPENDING CATEGORIES

    • Alcoholic drinks through retail
    • The five-year outlook for alcoholic drinks through retail
    • Market size and forecast for alcoholic drinks through retail, 2019-30
    • Graph 30: market size and forecast for consumer spending on alcoholic drinks through retail, 2019-30
    • Market size and forecast for alcoholic drinks through retail, 2019-30, current and constant prices
    • Alcoholic drinks through retail market – past, present and future
    • Value sales growth accelerates, driven by inflation
    • Opportunities
    • Alcohol moderation and income squeeze pose threats
    • The future of alcoholic drinks through retail
    • Meet the expert
    • Beauty and personal care
    • The five-year outlook for beauty and personal care
    • Market size and forecast for beauty and personal care, 2019-30
    • Graph 31: market size and forecast for consumer spending on beauty and personal care, 2019-30
    • Market size and forecast for beauty and personal care, current and constant prices, 2019-30
    • Beauty and personal care market – past, present and future
    • Innovation is imperative to growth
    • Opportunities
    • The market is more fragmented than ever before
    • The future of beauty and personal care
    • Meet the expert
    • Fashion
    • The five-year outlook for fashion
    • Market size and forecast for fashion, 2019-30
    • Graph 32: market size and forecast for consumer spending on fashion, 2019-30
    • Market size and forecast for fashion, current and constant prices, 2019-30
    • Fashion market – past, present and future
    • Soft growth expected for fashion
    • Opportunities
    • Impact of changes in consumer lifestyles on fashion
    • The future of fashion
    • Meet the expert
    • Food through retail
    • The five-year outlook for food through retail
    • Market size and forecast for food through retail, 2019-30
    • Graph 33: market size and forecast for consumer spending on food through retail, 2019-30
    • Market size and forecast for food through retail, current and constant prices, 2019-30
    • Food through retail market – past, present and future
    • Higher prices will be main driver of value growth in food through retail
    • Opportunities
    • Impact of changes in consumer lifestyles on food through retail
    • The future of food through retail
    • Meet the expert
    • Foodservice
    • The five-year outlook for the foodservice market
    • Market size and forecast for the foodservice market, 2019-30
    • Graph 34: market size and forecast for consumer spending on foodservice, 2019-30
    • Market size and forecast for the foodservice market, current and constant prices, 2019-30
    • Foodservice market – past, present and future
    • The foodservice market grapples with inflation and demand for value
    • Opportunities
    • Hybrid service, earlier dining and satiety-led demand reshape foodservice expectations
    • The future of foodservice
    • Meet the expert
    • Holidays
    • The five-year outlook for holidays
    • Market size and forecast for holidays, 2019-30
    • Graph 35: market size and forecast for consumer spending on holidays, 2019-30
    • Market size and forecast for holidays, current and constant prices, 2019-30
    • Holiday market – past, present and future
    • Rising prices see strong value growth
    • Opportunities
    • Experience-led travel unlocks higher spend
    • The future of holidays
    • Meet the expert
    • Home and garden
    • The five-year outlook for home and garden
    • Market size and forecast for home and garden, 2019-30
    • Graph 36: market size and forecast for consumer spending on the home, 2019-30
    • Market size and forecast for home and garden, current and constant prices, 2019-30
    • Home and garden market – past, present and future
    • Modest growth is expected for the coming years
    • Opportunities
    • Impact of changes in consumer lifestyles on home and garden
    • The future of home and garden
    • Meet the expert
    • Household care
    • The five-year outlook for household care
    • Market size and forecast for household care, 2019-30
    • Graph 37: market size and forecast for consumer spending on household care products, 2019-30
    • Market size and forecast for household care, current and constant prices, 2019-30
    • Household care market – past, present and future
    • Household care expected to continue with stable growth
    • Opportunities
    • Safety and environmental expectations influence the category
    • The future of household care
    • Meet the expert
    • Housing
    • The five-year outlook for housing
    • Market size and forecast for housing, 2019-30
    • Graph 38: market size and forecast for consumer spending on housing, 2019-30
    • Market size and forecast for housing, current and constant prices, 2019-30
    • Housing market – past, present and future
    • Housing costs remain on an upward path over the next five years
    • Opportunities
    • Impact of changes in consumer lifestyles on housing spend
    • The future of housing
    • Meet the expert
    • Insurance
    • The five-year outlook for insurance
    • Market size and forecast for insurance, 2019-30
    • Graph 39: market size and forecast for consumer spending on insurance, 2019-30
    • Market size and forecast for insurance, current and constant prices, 2019-30
    • Insurance market – past, present and future
    • Insurance premiums set to rise modestly over the next five years
    • Opportunities
    • Impact of changes in consumer lifestyles on insurance
    • The future of insurance
    • Meet the expert
    • Leisure
    • The five-year outlook for leisure
    • Market size and forecast for leisure, 2019-30
    • Graph 40: market size and forecast for consumer spending on leisure, 2019-30
    • Market size and forecast for leisure, current and constant prices, 2019-30
    • Leisure market – past, present and future
    • Leisure proves resilient despite wider economic challenges
    • Opportunities
    • Importance of wellbeing will reshape how leisure time is spent
    • The future of leisure
    • Meet the expert
    • Non-alcoholic drinks through retail
    • The five-year outlook for non-alcoholic drinks through retail
    • Market size and forecast for non-alcoholic drinks through retail, 2019-30
    • Graph 41: market size and forecast for consumer spending on non-alcoholic drinks through retail, 2019-30
    • Market size and forecast for non-alcoholic drinks through retail, 2019-30
    • Non-alcoholic drinks through retail market – past, present and future
    • The market enjoyed a summer boost in 2025
    • Opportunities
    • Impact of changes in consumer lifestyles on non-alcoholic drinks through retail
    • The future of non-alcoholic drinks through retail
    • Meet the expert
    • OTC remedies and pharmaceuticals
    • The five-year outlook for OTC and pharmaceuticals
    • Market size and forecast for OTC and pharmaceuticals, 2019-30
    • Graph 42: market size and forecast for consumer spending on OTC remedies and pharmaceuticals, 2019-30
    • Market size and forecast for OTC and pharmaceuticals, current and constant prices, 2019-30
    • OTC remedies and pharmaceuticals market – past, present and future
    • Strong growth for OTC remedies and pharmaceuticals
    • Opportunities
    • Impact of changes in consumer lifestyles on OTC remedies and pharmaceuticals
    • The future of OTC remedies and pharmaceuticals
    • Meet the expert
    • Technology and media
    • The five-year outlook for technology and media
    • Market size and forecast for technology and media, 2019-30
    • Graph 43: market size and forecast for consumer spending on technology and media, 2019-30
    • Market size and forecast for technology and media, 2019-30
    • Technology and media market – past, present and future
    • Growth driven by price rises for technology devices and price increases for services and subscriptions
    • Opportunities
    • Voice’s increasing promise, savvy shopping behaviours and concern over digital privacy
    • The future of technology and media
    • Meet the expert
    • Transport
    • The five-year outlook for transport
    • Market size and forecast for transport, 2019-30
    • Graph 44: market size and forecast for consumer spending on transport, 2019-30
    • Market size and forecast for transport, current and constant prices, 2019-30
    • Transport market – past, present and future
    • Transport spending continues to rise
    • Opportunities
    • On the move: how shifting lifestyles are reshaping transportation
    • The future of transport
    • Meet the expert
  5. APPENDIX

    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • The consumer
    • Consumer research questions
    • Consumer research methodology
    • UK generation groups
    • Abbreviations

UK consumer spending grew by an estimated 4.6% in 2025, to £1.9 trillion. Growth remains predominantly driven by inflation, and consumers continue to take a cautious approach to discretionary purchasing. Price sensitivity means competition within and between categories is high, but Brits are still keen to spend on affordable luxury.

Despite near-constant online connectivity, many Brits experience loneliness, creating a craving for more meaningful in-person connections. Brands that help bridge this divide by facilitating real-world interaction and belonging will reinforce their relevance and create loyalty with both digital and analogue consumers.

As AI becomes more commonplace, the key for brands is in finding a balance between AI-driven convenience with initiatives that provide authentic human connection. Successful brands will invest in transparent, problem-solving AI while retaining the human touch. Going too far too quickly on AI carries significant risk, as 70% of Brits already think life was better when tech played a less central role.

This Report Looks at the Following Areas:

  • Analysis of the UK economy, household finances and population trends impacting consumer behaviour.
  • Consumer spending over the last five years and forecast spend over the next five years, including segmentation by category.
  • British consumers’ experiences of loneliness and belonging in society.
  • What Brits talk to each other about, how and with whom they discuss different topics and what this means for brands.
  • Preferred methods of contact, both for interacting with friends/family and with businesses.
  • Consumer attitudes towards AI and the expected impact this will have on human connection.
  • Analysis of 15 consumer spending categories, including five-year forecasts for spending, key consumer trends and opportunities for brands.

Consumer Spending Categories Analysed in the Report:

  • Alcoholic Drinks through Retail
  • Beauty and Personal Care
  • Fashion
  • Food through Retail
  • Foodservice
  • Holidays
  • Home and Garden
  • Household Care
  • Housing
  • Insurance
  • Leisure
  • Non-alcoholic Drinks through Retail
  • OTC Remedies and Pharmaceuticals
  • Technology and Media
  • Transport
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